Tagal ko na nageexplain ng index fund but hindi ko parin nabibigay ang pros and cons, advantages and disadvantages of investing in index fund para kayo ay makapagdecide. As usual, paguusapan natin hindi lang yung good side, pati nadin bad sides ng isang investment para kayo ay makapagdecide on your own kung willing kayo itake ang risk ng isang investment.
Ang index, UITF, ETF or Mutual Fund, man yan ay pareho lang. Pareho lang in terms of structure and the return on investment. So hindi ko na sya sasabihin separately in this video. Once I say na "index", i-assume nyo na, na ito ay either index mutual fund or index UITF or index ETF.
1 Hands off approach to investing
2 Professionals will find it hard to beat your return on investment 90%, of all other mutual funds, UITF can not beat the index.
3 Peso cost averaging works very well for long term investment
4 Stable companies
5 Well diversified
6 Average returns boring
1 Average returns boring
3 Fund managers are not really working. Contrary to popular belief that index funds are managed by people that would work hard to invest. They actually do nothing. (they just copy a list from the PSE) yet you pay them money to copy a list without research.
4 Once a crash happens, the index would be the first to be affected and will receive the most damage.
Alternatives? Gusto mo hindi ka ma-affect ng crash? Gusto mo more than average returns? Then ang sagot dyan is to learn how to analyze individual companies, research and invest individually. But for that, kelangan mo matuto mag-analyze. Kung ito ang gusto mong gawin, you can visit howtoinvestforbeginners.com and learn how to research and invest in individual companies that will beat the index.